The new Up! has been given a raft of extra features, with prices for the entry-level model starting from below £9,000.
By far the largest addition is the 1.0-litre turbocharged petrol engine, which produces 80bhp.
Also included is a redesigned exterior, which incorporates new LED running lights at the front of the car and a new rear bumper.
The car’s steering wheel has also been changed, and a full media system now comes as standard on all models. Electric front windows and remote central locking are also included.
Seven different colours of interior can be picked from, and there’s USB connectivity for playing media through the car’s speaker
There’s also a special Beats model. This includes high-quality audio from Californian-based company Beats, with a high-powered subwoofer in the boot of the car.
Despite featuring a full infotainment system, remote central locking and electric front windows, the base-level Up! has a price tag of £8,995.
That 1.0-litre turbocharged engine is also incredibly efficient. It returns a combined consumption figure of 60.1mpg and emits just 96g/km CO2 while still being able to reach 62mph in under 10 seconds.
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The range is due to expand even further later on this year, with the introduction of the electric Up!, which will give drivers the option of a fully electric version of the compact city car.
It comes after VW announced it would be releasing a cluster of new electric vehicles over the next few years.
As part of its Together - Strategy 2025 plan, the automaker has said it could introduce more than 30 electric-powered vehicles by 2025.
The company’s estimates show it would hope to sell between two and three million of these models a year.
Unveiling the proposals in June, VW chief executive Matthias Mueller stressed the importance of trust to the brand’s reputation.
He was speaking in the wake of an internal inquiry following the emissions scandal that was uncovered in 2015.
After the scandal Volkswagen announced that it would channel its energy into green initiatives like electric vehicles and car-sharing services.